Studied by 5 peopleDemonstrate ethical work habits
To exhibit ethical work habits, an employee will be punctual, flexible, creative, attentive, complete objectives on time, deliver quality products, face challenges in a positive manner, manage their time, show respect by interacting in a positive manner with co-workers, and demonstrate leadership by solving problems, resolving conflicts effectively and encouraging mentorship.
Explain the Nature of Positive Customer Relations
Customers are the life of any business; any interaction should be positive, courteous, and respectful. Positive customer relations can include showing appreciation, delivering timely service, training employees effectively to interact with clients, and appeasing any concerns brought forward.
Discuss Legal Considerations In the Finance Industry
One of the recent legal actions taken in the finance industry was the 1999 Gramm-Leach-Bliley (GLBA) Act that protected consumer information and prevented data breaches. Consumer privacy as described in the GLBA act will continue to evolve as consumer privacy needs are addressed. Another recent legal action taken is the U.S. Securities and Exchange Commission (SEC) wanting to impose fees on market data (information on trades in U.S. financial markets). While the SEC's responsibility is to keep trade fair and equitable, many financial institutions are against this added cost to investment.
Describe the Concept of Insurance
Insurance is a promise of compensation for specific potential future losses in exchange for a periodic payment (premium). This protects the financial standing of an individual or company in the case of unexpected loss. A policy holder can be responsible for paying part of a loss (a deductible) and the insurer pays the rest.
Handle difficult customers
There are a variety of difficult customers including those who are angry, impatient, demanding and indecisive. To handle these, first maintain control over your personal emotions and behavior by staying calm and listening closely to the customer. Acknowledge their concerns, maintain eye contact and demonstrate compassion for the situation. Try to solve the problem or identify someone who can act on the customer's behalf. Whenever possible, offer choices.
Explain the Role of Ethics in Financial-Information Management
The most important role of an employee in financial information management is to manage assets in order to keep a business healthy. This requires investing wisely and transparently and managing a business' cash flow to create optimum profit.
Explain the types of economic systems.
There are four types of economic systems commonly studied. A traditional economy relies on custom and ritual to make its choices. A market economy relies on the consumption choice of consumers. A command economy relies on the government making all choices for consumers. A mixed economy relies on limited government involvement in a market based economy.
Discuss the nature of convergence/consolidation in the finance industry
The consolidation seen in the finance industry recently has been influenced by the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act. This recent legislation provides added protection for consumers, has increased regulation and expenses for financial institutions to operate. This often impacts the smaller, local banks ability to create a profit and therefore encourages consolidation with larger financial institutions to share the increased costs to do business.
Explain the nature and scope of globalization
Financial globalization is the worldwide development of economic, financial, trade and communication integration. This pushes business executives to consider broad views in the global marketplace as countries, and their economies, become interconnected and interdependent.
Analyze employer expectations in the business environment.
When employed in an organization, an employee should understand what management requires of him/her within his/her position, thus allowing an employee to meet and/or exceed those demands.
Explain the role of business in society
The role of business in society is "to innovate and deliver products and services, to use resources efficiently so that the value is created and to conduct operations so that they are performed profitability and accepted by society." In summary, "the role of business in society is a coherent way of thinking about a company's impact and interaction with society." Niall Fitzgerald KBE and Mandy Cormack, The Role of Business in Society: An Agenda for Action; Harvard John F. Kennedy School of Government
Discuss legal considerations affecting risk management
Risk management oversees compliance with industry regulations, laws and business rules. To avoid legal consequences, appropriate training must be provided to employees to manage this risk.
Explain the concept of management
Management is the coordination of activities a business uses to achieve results. According to management expert Peter Drucker, this includes both marketing and innovations.
Describe the relationship between economic conditions and financial markets
The financial markets of a country can reflect the current state of an economy but they are not always linked. However, if an economy is growing, business profits will increase as consumers spend discretionary income. If an economy is headed toward a recession, and consumers are less likely to make purchases, a businesses' profits could decrease which reduces the businesses' value in a financial market.
Use customer relationship management technology
Customer Relationship Management (CRM) technology is used to understand how your company uses data to influence interactions with current and future customers. CRM assists a business to understand how data is used to influence decision making to increase profits.
Identify desirable personality traits important to business
Your personality is a set of characteristics that relate to a person's emotions, motivations, interpersonal interactions and attitudes. Highly desired personality traits most often include professionalism, being "high-energy", confidence, the ability to work independently and intellectual curiosity.
Maintain appropriate personal appearance (PQ)
Maintaining your personal appearance is necessary as employees represent the business in which he/she is employed. Personal appearance includes facial expressions, body language, as well as clothes and grooming.
Explain factors that influence customer/client/business buying behavior
Buying behavior explains the purchase decisions that consumers make on a daily basis. As a business function, this means understanding what consumers buy, why a consumer has decided to make that purchase, when the purchase was made and from what distribution channel and how often the product or service is used. Buying behavior can be influenced by a variety of internal and external factors including perception of brand, competition, society and consumer research.
Explain the nature of project management
Project management is using knowledge, skills and techniques to execute a temporary group activity designed to develop a product, service or outcome both effectively and efficiently. There are five processes needed in project management: initiating, planning, executing, monitoring and controlling and closing.
Explain the role of ethics in risk management
Risk management, monitoring the opportunity for loss for a business, requires transparency. To do so, take appropriate actions on behalf of a client and at all times conduct transactions in a fair and balanced manner. Avoid any appearance of a conflict of interest and do the utmost to disclose all facts required.
Explain marketing and its importance in a global economy
As the global economy has expanded, brands must use technology and communication to establish themselves in a variety of markets.Marketing is a tool that is used to persuade customers and must be employed in order for businesses to sell their products.
Distinguish between economic goods and services
A good is something that you can use or consume. You buy a good with the idea that you will use it, either just once or over and over again. A service is something that someone does for you, like give you a haircut or fix you dinner. Another way to identify the difference is that a good is tangible and a service is intangible.
Discuss the nature of information management
Information management is the process of collecting and analyzing data that can be used in the strategic decision making process for a business. This can support a variety of business functions including developing customer databases, managing electronic purchasing decisions and monitoring competitor information.
Describe the use of technology in the financial-information management function
The financial information management function must balance the need to purchase technology for business operations and investing in technology that create enhanced products and services for consumers. For example, mobile technology now provides more convenience for both employees (simplified data entry) and consumers (access for purchase). Cloud computing offers businesses flexibility in a variety of ways, including managing and using data effectively for decision making.
Identify sources that provide relevant, valid written material
When evaluating material, determine if content is fact, opinion or marketing information. Other factors can include validity of research, relevance, timeliness, authority of the author and evidence offered to support a claim. If you are validating written material, ensure that you have cross-checked information that is provided by the source.
Explain the nature of effective written communications
Written communication is the most common form of business communication and therefore requires employees to write frequently and rapidly. "The words we write are very real representations of our companies and ourselves." Janis Fisher Chan. Written communications allow an employee to receive instructions or information upon which to base decision or take a specific action. Effective communication should answer questions, be relevant, focus on the end user, be specific, include examples, be tactful and accurate.
Exhibit Cultural Sensitivity
A cultural sensitive employee will value diversity, be willing to adapt communication and behavior to be compatible with another's cultural norms and be willing to learn traditions and characteristics of other cultures.
Discuss the effect of tax laws and regulations on financial transactions
There are four types of financial transaction tax: Securities, Currency, Bank and Automated Payment. These taxes, known as financial transaction taxes, help keep financial markets stable, allows for equitable tax collection across a nation and lowers the risk of tax evasion.
Describe the nature of legally binding contracts
A contract that is legally binding is considered valid and enforceable in a court of law. A contract is a clear outline of an agreement between at least two parties. Usually contracts define each party involved and any terms used within the agreement, the duration and/or timelines of the contract, payment terms and provisions that protect each party. Legally binding contracts are required to have "consideration" which means both parties are willingly entering into the agreement and are not being coerced.
Describe health and safety regulations in business
In 1970, the Occupational Safety and Health Act was passed that created the Occupational Safety and Health Administration (OSHA). A business is responsible for protecting the safety, health and welfare of all employees. Therefore, a business must create procedures to manage risks that could cause injury and/or damage to employees, property and the environment.
Evaluate quality and source of information
Information is widely accessible in today's market so evaluation tools can be used to determine validity. A reader should determine who the intended audience is, if the data provided is fact or opinion and if a credible author is attached to the information. Further, factual documents should be supported with evidence including primary and secondary information. Quality information should be timely.
Interpret securities tables
A securities table provides information on a public auction of securities. In 2013, the U.S. Treasury Department also held 267 public auctions issuing $7.9 trillion in securities. The securities table provides an investor with information about an auction including: what security is available, the issue date, maturity date, terms and conditions of the sale and various bid closing times.
Handle telephone calls in a businesslike manner
A businesslike manner on the telephone includes a formal greeting including "Good Morning/Afternoon", name of business and name of department or person answering the call. Calls should be answered promptly, take messages as needed and use the hold button if needed.
Explain the role of finance in business
The role of finance in business is to help capital move from investors to businesses. Businesses need finance to assist with operations. This is possible through financial markets and various investment vehicles including loans, and short and long term financing. Finance can also include roles in business development and corporate governance.
Describe sources of securities information
There are many places that a consumer or business can gather information on securities including any local financial institution. The U.S. Treasury Department provides information at www.treasury.gov and the TreasuryDirect.gov website. The U.S. Securities and Exchange Commission can be found online at www.sec.gov and state governments often have a securities division within their treasury departments.
Discuss the nature of human resources management
Human resource management is a process of bringing people and organizations together so that the goals of each are met. This includes a focus on: results rather than on rules; helping employees develop his/her full potential; encouraging employees to give his/her best to the organization; assigning people to jobs in order to produce good results; helping the organization meet its goals in the future by providing for competent and well-motivated employees; building and maintaining positive relations between people working at various levels in the organization.
Describe the nature of budgets
A budget is an itemized forecast of an individual or company's income and expenses for a designated period of time. This allows the entity to evaluate how to use funds in fixed and discretionary categories as well as provides focus to achieve financial goals and avoid debt.
Discuss actions employees can take to achieve the company's desired results
One of the most important tasks an employees has is to work towards a company's goals in order to create a profit.
Explain the need for innovation skills
Innovation is necessary for an organization to continue to move forward in the marketplace and meet customer needs. Innovation includes the ability to think critically, be creative, an ability to solve problems, manage risk, conduct research, coordinate project management, use information technology as well as the basic tasks of reading, writing and mathematics.
Explain the nature of operations
Operations include the activities involved in the daily functions of the business to generate revenue.
Discuss the nature of customer relationship management
The goal of customer relationship management (CRM) is to maximize the value and effectiveness of all opportunities that businesses have to connect with customers; provide outstanding service to customers; maximize customer satisfaction; attract and retain loyal customers; cultivate and maintain positive, profitable relationships with customers and develop individualized relationships with customers.
Discuss the nature of risk control (Internal, External)
Risk can be seen in both internal and external environments for a business. External risks can include funding, regulatory affairs, competition, partnerships, environment and brand reputation. Internal risks can include financial management, legal compliance, and corporate governance.
Orient new employees
Providing an orientation is a process that allows an organization to integrate a new employee and enable him/her to contribute to the team quickly. At this time, an employee will learn about personnel policies, company safety programs, and details about his/her position. Possible actions can include providing a mentor, providing work samples, and providing a Frequently Asked Questions document.
Explain the responsibilities of finance professionals in providing client services
A financial professional, who works with clients to create budgets, retirement plans, investing strategy, must first have exceptional knowledge of the industry to respond to client needs. Additionally, communication skills are paramount as clients are discussing sensitive financial matters including marriage and planning for death. The ability to listen to clients and show empathy while being responsive to a client's needs will build trust and establish a long term relationship.
Explain types of business ownership
There are three types of business ownership: sole proprietorship, partnership and corporation. A sole proprietor owns and operates a business by oneself. A partnership is owned and operated by two or more people and is jointly responsible for the businesses outcomes. A corporation is operated by several people and owned by stockholders.
Describe the role of financial institutions
A financial institution conducts transactions such as investments, loans or deposits. There are a variety of financial institutions that can provide services in this industry including Commercial Banks, Investment Banks, Insurance Companies, Brokerages, Investment Companies, Unit Investment Trusts (UIT), Face Amount Certificates, Management Investment Companies and NonBank entities such as Savings and Loans and Credit Unions. All of these institutions interact with consumers and benefits to assist consumers in attaining their financial goals.
Explain the role of ethics in human resources management
Ethics are standards set by organization that help ensure that people are treated fairly and honestly. In human resources management this includes making decisions that promote workplace cohesion, establishing standards and procedures that assures in all situations that individuals are treated equally. Ethics policies in the area of human resources can include discrimination, sexual harassment and treatment of employees. Ethical breaches in this area can damage a company's reputation, reduce employee loyalty and create litigation.
Explain the nature and scope of the financial-information management function
The purpose of the financial-information management function is to oversee the financial resources of an organization. This includes determining what a company needs for capital (which funds should be used for investment), cash (what purchases should be made and at what time) and control (providing analysis of financial statements).
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